Bitcoin price is clearly on the ropes, sending the market and its participants into a state of extreme fear. But much like a superhero donning their cape and hustling toward danger, an ultra-reliable bottom signal has returned to save the day.
Here is a closer look at the signal that appeared twice at the crypto bear market bottom, again on Black Thursday, and once again today.Bitcoin Price: Bottoming Sequence Initiated?
Markets, much like everything else in the universe, are cyclical in behavior. Cryptocurrencies go through cold winters, but when they thaw, they run hotter than ever before.
Related Reading | Finding Fibonacci: Is Bitcoin Beginning A “Golden” Recovery?
Sequences instead must meet certain conditions. Fibonacci sequence, for example, involves a sequence where the next number in the sequence is always the sum of the previous two numbers.
Why is this worth pointing out? Because one of the most reliable buy signals produced by the TD Sequential might have just called the Bitcoin bottom.
Will the signal call the bottom six out of six times? | Source:
No Need To Fear: TD Sequential Indicator Is Here
The TD Sequential indicator has swooped in to save the day with a “TD 9” buy setup on the 3-day time frame. The chart above has been cleaned up to remove bearish signals and “TD 13 buy countdowns” that haven’t yielded nearly as dramatic results.
What is left is a chart that since the very bear market bottom, has only triggered five other times including today. Each signal was either a short- or long-term bottom in Bitcoin.Related Reading | Point & Figure: The Chart That Makes Bitcoin Support Cut And Dry
Significant moments the TD 9 buy setup has appeared was at the very bear market bottom, the subsequent retest of lows, and Black Thursday. Less powerful signals in August 2019 and December 2019 both eventually led to new lows, but there is no denying a bounce occurred. During each of those moments, fear was especially prevalent across crypto.
The signal is so strong, that Bitcoin today remains more than 1000% above the last time it appeared back in March 2020. With that in mind, what type of ROI might this latest signal result in? //twitter.com/tonyspilotroBTC/status/78544656Follow or join for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com